Bundesbank Head Cautions Japan

By

Brian Blackstone

Jan. 21, 2013 5:25 p.m. ET

FRANKFURT—Bundesbank President Jens Weidmann warned Japan not to "politicize" its exchange rate by pursuing an overly aggressive monetary policy, reflecting mounting concern in Europe that other central banks may cheapen their currencies as a means of stimulating economic growth.

Japan's government as well as Hungary's "are intervening heavily in the duties of the central banks, pressuring for a more aggressive...